• Joseph Edwards is the lead researcher at Enigma Securities, a London-based crypto-liquidity company.
  • He cited Bitcoin’s meteoric surge to $ 60,000 last year and predicts it could hit $ 250,000 by 2025.
  • The former professional esports coach is also sharing two altcoins that could increase 20x over the next few years.

Fate loves irony. Just a day before the peak of the 2017 Bitcoin bull run, one of South Korea’s top professional esports players – Jeon “ikssu” Ik-soo – announced that he is retiring to become a full-time crypto trader.

When Bitcoin entered a multi-year year

Bear market
, Ik-soo had to quietly return to pro gaming. However, his shocking move put cryptocurrencies on the radar of many esports enthusiasts.

One of them is Joseph Edwards, who at the time was a professional esports trainer and analyst for several teams in North America and Brazil. Falling into the crypto rabbit hole, the Oxford graduate decided to make a bold transition into another emerging industry.

Today, Edwards wears a completely different hat as head of research at Enigma Securities, a London-based cryptocurrency company

liquidity
and treasury solutions.

He’s not the only one naturally drawn to gaming and crypto. FTX billionaire founder Sam Bankman-Fried, 29, has said he is “famous for playing League of Legends while on the phone.”

Edwards believes there is a natural overlap between pro gaming and crypto. Whether it is about the demand for adaptability, young demographics or competition, prostitutes in both industries have to surpass themselves.

“Crypto, like esports, is an industry where there is no barrier to entry and there are roughly 100,000 people right behind you who want to do what you can do better than you,” Edwards said in an interview. “Adaptability and competitiveness have to be both, because if you are not, someone else will do it for you.”

Bitcoin’s zigzag path to $ 250,000

After having worked in the crypto industry for only about two years, Edwards is already having success forecasting the price development of Bitcoin.

When Bitcoin broke above $ 20,000 for the first time in mid-December last year, it issued a research note that pegged its path at $ 60,000 – a milestone it reached in mid-March.

“If BTC hits even 10% of the market capitalization of gold on a nominal basis, that means a fully diluted valuation of $ 60,000, or 3x current levels, 19x the 2019 cycle low,” he wrote in a December 16 release .

At the moment, with Bitcoin trading just below $ 40,000 after a massive short squeeze up 22% in the past seven days, Edwards expects another short-term spike, followed by more drawdowns in September.

The next move, according to Edwards, is likely to be another mechanical move caused by a shift in the retail-facing crypto derivatives markets over the past two months.

He explains that in the past, collateral for crypto derivative contracts was held in Bitcoin, but traders are increasingly using US dollars or stablecoin tether as collateral, resulting in around 64% of all open positions in USD or stablecoin. denominated derivatives are held.

Collateral for crypto derivative contracts is increasingly denominated in stablecoins and US dollars.


Enigma securities

“When you hold Bitcoin as collateral, over time your collateral will be worth less as the price goes down, making it easier for you to be liquidated,” he said. “On the flip side, the price of collateral goes up, so if you short the market, it is much harder to get liquidated.”

Edwards believes the recent upside breakout was aided by the fact that all of this collateral is held in US dollars, which resulted in the short positions being liquidated and trimmed.

Another such bottleneck could push Bitcoin to the $ 45,000 to $ 46,000 range next month, but Bitcoin is likely to be lower as more regulatory measures are announced in September, he said.

In the long term, he is betting that Bitcoin will reach $ 250,000 by 2025, as it reaches 20-25 percent of gold’s market cap and the entire crypto market grows to a $ 10 trillion market.

2 altcoins that could go up 10x to 20x

Contrary to many bullish forecasters, Edwards believes that cryptocurrencies have already plunged into a bear market, but the end of that bear market is likely closer in sight than people would expect.

“For the most part, what retail investors should be doing in crypto bear markets is stepping down for a few months,” he said. “You can’t really escape a crypto bear market by getting into altcoins. If Bitcoin keeps going down, we’ll see more drawdowns across the board.”

In the long term, he is “genuinely interested” in the basics of the Solana (SOL) and Algorand (ALL) logs.

Solana, designed to make building decentralized applications easier, aims to improve scalability by introducing a mix of proof-of-history and proof-of-stake models. In some ways, it’s cheaper, faster, and easier to use than Ethereum.

“Do I think Solana will hit 30% to 40% of Ethereum’s market cap? It’s not certain, but there is definitely the potential,” Edwards said. “Over the next five years, Solana can easily grow 15-20 times that of the rest of the ecosystem.”

Algorand, which powers decentralized financial activities like Ethereum, similarly claims to enable faster transaction speeds, lower costs, and improved security compared to other blockchains. It also strives to be environmentally friendly and efficient, which has become a lightning rod for the energy-intensive Bitcoin.

Founded by an MIT computer science professor, the protocol with a current market capitalization of $ 2.6 million could grow at least tenfold in the next three to five years, according to Edwards.